Financials: Dec. Bonds are currently 10 higher at 119'19, the 10 Yr. Notes 10 higher at 117'05, the 5 Yr. Notes 6 higher at 115'10 and the 2 Yr. Notes 1 higher at 108'09. We continue to hold the combination of short Dec. Bonds and short the Dec. Bond 116'00 put. Near term support remains at 118'12 and near term resistance is currently 120'17. If the market allows, I will be willing to put on the long 10 Yr. Notes/short Bonds spread at 3'04 premium the Bonds (currently at 2'13 premium the Bonds).
Grains: On Friday Nov. Beans were 12 cents lower at 941'0, Dec. Corn 11 lower at 318'0 and Dec. Wheat 4'4 lower at 457'2. Over night Beans were 8 lower, Corn 4 lower and Wheat 2 lower. We remain long out of the money calls and/or call spreads in the Dec. Corn. If you have on the call spreads in your short leg is at a strike price of 400'0 or higher I recommend buying in this leg at 2'0 or less. We also remain long Dec. Wheat. A stronger dollar, an anticipated near record crop in both Beans and Corn and lack of a frost warning are providing pre-harvest pressure to the market this morning
Cattle: On Friday Live Cattle was lower across the board with the Oct. contract 22 lower, Dec. 45 lower and Feb. 82 lower. Fridays Cattle on Feed Report showed the following: On Feed as of Sept. 1, 99.0% of a year ago versus the average estimate of 98.5%. Placed in August was 102.0% versus an estimate of 110.9%. Marketed in August 96.0% versus 95.3%. All the numbers were near the pre-report estimates. I am a bit concerned for the near term because of the high placements but will note that the on feed number remains constructive as compared to on feed numbers over the last few years. I am still on the sidelines and will wait and see how the market acts on both the Oct. and Dec. contracts if the market breaks to the 84.00 level. The early call is lower.
Silver: Dec. Silver is currently 34 cents lower at 16.73. We remain long but have taken some profits reducing the size of our position.
S&P's: Dec. S&P's are currently 7.00 lower at 1054.00. We continue to hold out of the money puts as both portfolio insurance and for speculation. I remain on the sidelines in futures.
Currencies: As of this writing the Dec. Euro is 90 lower at 1.4630, the Swiss 83 lower at 9643, the Yen 125 lower at 1.0825 and the Pound 97 lower 1.6174. We remain long out of the money puts in the Yen and long out of the money puts and/or put spreads in the Pound. The Dec. Dollar Index is currently 57 higher at 77.240.